PURPOSE:The purpose of this PN is to
revise the NFS to eliminate the requirement for contractors to establish and
maintain an Earned Value Management System (EVMS) for firm-fixed-price (FFP)
contracts. The change is made to reflect the reduction in risk associated with
FFP contracts and is intended to relieve contractors of an unnecessary
reporting burden.

ACQUISITIONS
AFFECTED BY CHANGES:
All new solicitations
issued after the effective date of this PN.Because this change reduces requirements and will likely reduce costs, COs
should consider amending existing solicitations and revising new awards to
remove the requirement for EVM on fixed-price efforts, in accordance with FAR
1.108(d) and NFS 1801.270(b).

ACTION
REQUIRED BY CONTRACTING OFFICERS:
Contracting
officers shall follow the policy at NFS 1834.201 and the prescription at
1834.203-70 to determine whether Earned Value Management shall be required on
an acquisition.

PROVISION
AND CLAUSE CHANGES:
None

PARTS
AFFECTED:
Part 1834.

REPLACEMENT
PAGES:
You may use the enclosed pages to replace Part 1834 of the NFS.

TYPE
OF RULE AND PUBLICATION DATE:
The rule was published as a final rule in the Federal Register (Vol. 76, No. 131
FR 40280-40281) July 8, 2011.

(a)NASA's implementation of
OMB Circular No. A-109, Major Systems Acquisition, and FAR Part 34is
contained in this Part and in NASA Policy Directive (NPD)7120.4, "Program/Project
Management," and NASA Procedures and Guidelines (NPG) 7120.5, "NASA Program and Project Management Processes and
Requirements".

Subpart 1834.2--Earned
Value Management System

1834.201
Policy.

(a) NASA requires use of an Earned Value
Management System (EVMS) on acquisitions for development or production work,
including development or production work for flight and ground support systems
and components, prototypes, and institutional investments (facilities, IT
infrastructure, etc.) as specified below:

(i) For cost or
fixed-price incentive contracts and subcontracts valued at $50 Million or more
the contractor shall have an EVMS that has been determined by the cognizant Federal
agency to be in compliance with the guidelines in the American National
Standards Institute/Electronic Industries Alliance Standard 748, Earned Value
Management Systems (ANSI/EIA-748).

(ii) For cost or fixed-price incentive contracts and subcontracts
valued at $20 Million or more but less than $50 Million, the contractor shall
have an EVMS that complies with the guidelines in ANSI/EIA-748, as determined
by the cognizant Contracting Officer.

(iii) For cost or fixed-price incentive contracts and subcontracts
valued at less than $20 Million the application of EVM is optional and is a
risk-based decision at the discretion of the program/project manager.

(b) Requiring earned value management for
firm-fixed-price (FFP) contracts and subcontracts of any dollar value is
discouraged; however, a schedule management system and adequate reporting shall be required to plan and track schedule
performance for development or production contracts valued at $20 Million or
more. In addition, for FFP contracts
that are part of a program/project of $50 Million or more, the contracting
officer shall collaborate with the government’s program/project manager to
ensure the appropriate data can be obtained or generated to fulfill program
management needs and comply withNASA Procedural Requirements (NPR)
7120.5.

(c) An EVMS is not required on
non-developmental contracts for engineering support services, steady state
operations, basic and applied research, and routine services such as janitorial
services or grounds maintenance services.

(d) Contracting
officers shall request the assistance of the cognizant
Defense Contract Management Agency (DCMA) office in determining the adequacy of
proposed EVMS plans and procedures and system compliance.

(e)Notwithstanding the EVMS requirements
above, if an offeror proposes to use a system that has not been determined to
be in compliance with the American National Standards Institute/ Electronics
Industries Alliance (ANSI/EIA) Standard-748, Earned Value Management Systems,
the offeror shall submit a comprehensive plan for compliance with these EVMS
standards, as specified in 1852.234-1, Notice of Earned Value Management
System. Offerors shall not be eliminated from consideration for contract award
because they do not have an EVMS that complies with these standards.

1834.202Integrated baseline reviews.

(d)Use of pre-award IBRs is limited to the second or subsequent phases of a
phased acquisition (see 1817.73).When a
pre-award IBR is contemplated, the contracting officer shall include the
instructions with respect to the schedule and conduct of the IBR in the
proposal request.

1834.203 Solicitation
provisions and contract clause.

The FAR EVMS solicitation
provisions and contract clause are not used in NASA contracts.See 1834.203-70 for the NASA EVMS
solicitation provision and contract clause.

(a)
The provision at 1852.234-1, Notice of Earned Value Management System, in
solicitations for contracts for --

(1) Development or production,
including flight and ground support projects, and institutional projects
(facility, IT investment, etc.), with a value exceeding $20M; and

(2) Acquisitions of any value
designated as major by the project manager in accordance with OMB Circular
A-11; and

(b)
The clause at 1852.234-2, Earned Value
Management System, in solicitations and contracts with a value exceeding
$50M that include the provision at
1852.234-1.The contracting officer
shall use the clause with its Alternate I when the contract value is
less than $50M.